The Terraces project in the Central Perimeter submarket is back on the market; RBS Securities, who owns the twin 11-story office towers, has increased their marketing efforts in recent months. Terraces has drawn attention to itself in the past year through attract large lease deals, including State Farm, Ventyx, and AFC Enterprises. These deals brought the property up to 93% leased.
With such anchor tenants, you would think investors would be tripping over themselves to purchase this building – but there are few points of concern. The main concern is that while State Farm, one of the buildings’ anchor tenants, took a huge amount of space last year, they only signed a five year deal – a short term relative to the amount of space. Add the fact that State Farm has recently purchased Hammond Exchange, located just down the street from Terraces, and plans to sell their campus in John’s Creek, and it looks as though State Farm doesn’t have any intention of making Terraces its long-term home.
Despite this possible setback, RBS Securities has decided to test the market. Increased job and rent growth has led to the return of investors to Atlanta, and they’re hoping to attract some to this project. CBRE Global Investors purchased the 31-story Three Ravinia just a few months ago for about $177 PSF; most speculate that Terraces could go for as much as $180 PSF.Share